History 2186A/B Lecture Notes - Lecture 4: South Sea Company, Life Insurance, Washington Mutual
30 Jan 2017
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Bubble or crush does(cid:374)"t really matter cause both generate panic. People think is happening is more important than what is actually happening. Bank runs (depositers panic and demand a liquidation of their assets) Panic has the ability to create a fc (financial crisis) Panic can bring down banks or economies based on panic alone. Panic can create a panic where panic did not exist: curency crisis. The kipper-und wipperzeit is looking at a coin. All coins have a raised rim, to stop theft traditionally. Since metal value did not change the value of metal was the value of the coin. People lost more and more trust as the time went on since basing and clipping increased. Different states with different currency resulted in different coins at different times (example give 20 and get different currencies) Merchants and bankers weighing coins in the market. The kipper-und wipperzeit is the scale used to measure the coins.
